In the past, one of the easiest ways to make money was to mine Bitcoin (BTC). You simply connect your computer and let it start solving difficult math problems on the BTC ledger, which rewards you with Bitcoin (BTC). Now, after several years of existence, the process is no longer as easy as it was.
Since many discovered how they could make free money from Bitcoin mining, the rivalry to solve these mathematical problems on the ledger has increased. This has resulted in an increase in the complexity of the problem. It has also made the free money not so free anymore.
Retail Miners Are Longer Making Money from Bitcoin (BTC) Mining
The competition is now so strong that miners that plug in their computers at home just to make quick money are now losing money. This was revealed in a data from a data analytics and blockchain company – Diar. According to the data from the firm, institutional mining firms have increased considerably over the years. They have also squeezed the margins of retail Bitcoin miners.
Bitcoin (BTC) Price Today – BTC / USD
According to Diar, the total amount of revenue generated from Bitcoin mining in the first half of this year exceeds last year’s earnings. At the moment, revenues generated this year have surpassed that of 2017 by over $1.4 billion. However, August’s ending hash rate saw miners paying for retail electricity prices move to unprofitability. This happened for the first time in September.
The hash rate is the amount of computing power needed for a BTC transaction confirmation. The hash rates started getting higher as the competition increases. In turn, this significantly increased electricity bills and some miners even packed up their mining equipment.